The world’s biggest crypto currency increased 3.9 per cent to $28,399.63

Bitcoin jumped sharply Wednesday as investors brushed aside initial concerns around U.S. regulators’ clampdowns on industry giants and became prepared to take some risk.

The world’s biggest crypto currency increased 3.9 per cent to $28,399.63, as per Coin Metrics. Bitcoin has reclaimed the $28,000 mark after dropping below it on Monday after news of the U.S. Commodity Futures Trading Commission CFTC’s lawsuit against Binance. Earlier during the day it increased to $28,637.25.

Ether, the second-largest digital coin, increased 1.7 per cent to $1,808.29.

Bitcoin has been continuously increasing in 2023 following a harsh 2022 that witnessed collapses of leading crypto exchanges and a steep slump in prices. Investors have taken some relief from the thought of a turnaround in the U.S. Federal Reserve’s interest rate hiking moves, which put pressure on risk assets such as stocks.

The cause for the climb Wednesday was not immediately clear. Though, it comes amid a wider gain in U.S. stocks. Bitcoin has been known to follow movements in equity markets, with investors treating it like more of a conventional risk asset.

U.S. regulators have sharpened their clampdown on crypto companies of late, with the Commodity Futures Trading Commission suing Binance and its co-founder Changpeng Zhao for supposedly breaching trading rules by courting clients in the U.S. without authorization.

The Securities and Exchange Commission (SEC) has also threatened to take legal steps against Coinbase for supposed infringements of securities rules.

Bitcoin had earlier got a boost from distress in the global banking system. Swiss banking giant Credit Suisse was recently rescued by its rival UBS in a government-backed, cut-price deal.

U.S. tech-focused lender Silicon Valley Bank (SVB) and crypto-oriented banks Silvergate and Signature have also collapsed.

The Federal Reserve has sought to cushion the blow of the banking crisis with a lending program known as the Bank Term Funding Program, or BTFP, which intends to assist banks meet their commitments to depositors.

Bitcoin supporters say it can serve as a store of value during economic distress and a form of money people can access without the requirement for a bank account.

Though, it is highly volatile and has been known to waver 10 per cent within hours.